Why is gold ownership so low?

ByteTree/Charlie Erith/6-29-2022

“The investment industry covers both the fund management industry and the investment banks that serve them. Between them, they have an iron lock on the world’s savings.:…There is little money to be made from gold by the people who set the investment agenda. The investment industry is heavily incentivised to drive money into equities and bonds. Indeed, it is an industry incentivised to ridicule it.”

USAGOLD note: For those who wonder why they have a difficult time with their financial advisor when it comes to investing in gold, Erith’s provides the answers – with no punches pulled. We cited this analysis in yesterday’s DMR and post it her for those who may have missed it. Because investors own gold as a means to long-term asset preservation, they do not trade it and in the process generate commissions, but treat it instead as a form of savings and portfolio. “Gold,” Erith concludes, “should be a core part of a properly diversified portfolio. But you can be sure of one thing. An industry that is incentivised to ignore it will be in no hurry to tell you so.”